All Forum Posts by: Cathleen Blackmon

@David M.  Correct, but at least he could get that portion of his funds back.    

The new loan amount can be no more than the actual documented amount of the borrower's initial
investment in purchasing the property plus the financing of closing costs, prepaid fees, and points on the
new mortgage loan (subject to the maximum LTV, CLTV, and HCLTV ratios for the cash-out transaction
based on the current appraised value).

Are you going to have enough houses to sell all the new Texans?

Hey Tomash, Not sure where you are located so unable to refer you or raise my hand to help.  You should be able to do a cashout refiannce up to 75% of value.  So if it's worth 100k you can take out 75k less financing charges.  Fannie and freddie have a 6 month seasoning rule on title but it doesn't apply if you pay cash, that is called delayed financing.  Not sure what problem you are running into with the local banks but be happy to help if I can.  Feel free to message me. 

Hi Jesse,  I work in the San Antonio Austin region.  I'm a loan officer and work with a great program that helps buyers purchase a primary with no money down.  If you plan to house hack I would suggest we look into this program for you.  You can save your savings for the next door. 

I think it's important for buyers to be informed on ALL financing options. There are great down payment assistance programs not just for FTHB but buyers purchasing a new primary. No asset verification, so if down payment has been saved it can stay in savings. Credit scores don't have to be amazing, and income limits are pretty high.

I also think an inspector can make or break a deal.  A brand new home will still have a 20 page report of things that are wrong.  Need a good inspector and realtor to navigate that report. 

We lived in Colorado Springs for a bit and really enjoyed it.

I'm a local lender and you do not need to have rents that are 125% of the mortgage.  We would use current leases or projected rental income via the appraisal rent schedule at 75%.  This will merely offset the mortgage and your current income would need to support the remaining portion of the liability.  

You can also utilize a first time home buyer program that will cover your down payment.  I'd be happy to go over the details of that program and the guidelines our investors follow in this scenario.  

Sounds like you have some good negotiating skills.  255k for a 2 unit in the area seems like a good price without me running the comps.  I think the only thing that would have me hesitant is the plan to get old tenants out and new tenants into the property.  The eviction process amidst covid isn't the easiest in Colorado from my understanding.  I can put you in touch with a GOOD property manager that we used for our Springs rental and perhaps at the very least they can give you some guidance on evictions, raising rents, and-or airbnb laws.  

What is DSCR? And who are these lenders?

We cash flow great (or what I think is great). About $350 after fees for a SFR with about $50k in equity. My CPA used incorrect days rented as it was our primary for a good portion of the year. I know lenders use a 25% vacancy factor as well that makes it look not so good.

Newbie Alert! 

I have found a deal and am in negotiations.  We plan on using hard money to purchase and rehab.  Once we have bought, rehabbed, and rented the property, what happens if we can't refinance?  

Lenders/Banks will not use all of our income due to commission being less than 2 years.  Also looking at my tax return it appears that the rental income divided by days rented get's me a negative cash flow (even when adding back in the depreciation).  This will shoot our Debt to income ratio out of financing bounds.  

Is our only choice to flip?  How can I refi this deal to pay off the hard money debt?